Mahesh Somani Official Blog

Real estate means Real Asset

[maheshsomani]

Land Plotting Real Estate Business in West Bengal

West Bengal is a state located in the eastern part of India, known for its rich cultural heritage and diverse landscapes. Over the years, the state has witnessed significant growth in the real estate sector, with land plotting being one of the most lucrative businesses.

Land plotting involves dividing a large piece of land into smaller plots and selling them individually to buyers. This business model is particularly popular in West Bengal due to the availability of vast stretches of land in the state.

One of the key advantages of land plotting is that it allows developers to cater to a wide range of customers with varying budgets. By dividing the land into smaller plots, developers can offer affordable options to low-income buyers while also catering to high-end customers looking for premium plots.

Moreover, land plotting also offers developers more flexibility in terms of design and construction. Since each plot is sold individually, developers can customize the design and construction of each plot based on the buyer's requirements.

However, land plotting also comes with its own set of challenges. One of the biggest challenges is obtaining the necessary approvals and permits from the local authorities. Developers need to ensure that they comply with all the relevant laws and regulations before embarking on a land plotting project.

Another challenge is marketing and selling the individual plots. Developers need to have a robust marketing strategy in place to attract buyers and sell the plots at a profitable price.

Despite these challenges, land plotting remains a highly profitable business in West Bengal. With the state's growing population and increasing demand for affordable housing, there is a significant opportunity for developers to tap into this market and create sustainable business models.

In conclusion, land plotting real estate business in West Bengal offers significant opportunities for developers to cater to a wide range of customers and create profitable business models. With careful planning, compliance with regulations, and effective marketing strategies, developers can succeed in this highly competitive market. 

Mahesh Somani 

Managing Director  :  Liyans Commerce Pvt Ltd Chairman                 :  National RERA Committee, NAR India President                 :  RECA  Kolkata

[maheshsomani]

Extension in Reduction in stamp duty and Circle rates will further boost the real estate sector as a whole.

It will benefit homebuyers, developers, real estate agents and govt exchequer too. Due to badhra month and pitrapaksh, many deals got postponed, which will get matured soon. As the overall real estate industry is in upward trend, already there has been 10 to 20% hike in prices in last one year, it will give further hike soon in time to come.

Post festive season, the 3rd quarter (October to December 2022) of financial year will be more charming quarter due to estimated good climate, reasonablility of property prices, crisis of appropriate demanded inventories due to demand supply gap, new launches, better trust & confidence on real estate market by homebuyers, organised & consolidated market and undoubtedly this notification will boost further positive sentiments in the industry.

Notification No. 1645-F.T. | 27thSeptember, 2022 | Govt. of West Bengal

Mahesh Somani Chairman - National RERA Committee, NAR India. President : RECA Kolkata.

[maheshsomani]

[maheshsomani]

Beginning of Real Estate Boom in West Bengal

The relief was being granted for registration of deeds affecting sale/lease of land/house/flat. The first financial statement of state authorities in its third time period, also introduced a 10% deduction inside the circle rate of property, which determines the price at which a belongings is registered.The state Government expects the measures announced for the  real estate industry  to create additional call for  the sector, with the intention to have a multiplier effect on the economic system.The reduction in the rate of stamp duty should help the customers and this must boost income. This announcement of the state government would inspire the real estate sector  to release new projects and infuse fresh investments.

“The yesterday's announcements will boost the real estate industry and it's the beginning step  towards  boom of real estate industry. 2% reduction on stamp duty and 10% reduction on circle rates will boost the sentiments of property buyers and hence increase in sales in next 2 quarters.All pending registration will be concluded soon and huge amount will be received by the state exchequer. All income groups LIG/MIG/HIG will be benefited through more cash flows in hand.The overall property sales will get a hike the tune of minimum 15 to 20% in this quarter itself. Expecting a hike in property prices by 8% to 12% at the end of this fiscal year due to surge in input costs, non availability of GST input credits, non availability of appropriate configuration of demanded inventory etc.Kolkata and suburban areas still have shortage of inventory which homebuyers are looking for. Many developers are waiting for new launches, nearly 10 million sqft of spaces will expected to be launched in next 12 months.For home buyers, this is the best time to buy property for self use or investment purposes.Certainly, a win win situation for all stakeholders like developers, homebuyers, real estate agents, vendors, state exchequer etc.” said Mr. Mahesh Somani : President : RECA Kolkata. Chairman - National RERA Committee, NAR India.

[maheshsomani]

States should to decrease stamp duty to make housing low-priced to all

States should lower stamp duty to make homes more cheap to low-earnings families.The revenue loss will be offset by the taxes they'll generate via building extra houses under the Centre’s Pradhan Mantri Awas Yojana (PMAY) and Housing for All (HFA) programmes.PMAY goals  to provide homes to all urban households by using 2022.

“That can also reduce the sales prematurely but with a purpose to be more than compensated for through the accelerated production pastime this is promoted no longer just by way of PMAY but additionally via the boom in demand to be able to follow. In early November, the Karnataka authorities decreased the assets registration from 5 percentage to 3 percentage for residences that cost much less than Rs 20 lakh. The choice was taken to enhance call for in the less expensive housing area. The new fee of three percentage can even follow to industries buying a property (constructing or land) and consequently different states have to also think long term and reduce the responsibility. 

The HFA coverage, which gives a subsidy to humans from low and middle-profits agencies, does not deal with the problem of high charges without delay and a key component of fees continues to be the taxes that country governments charge as stamp obligation and registration fees on the time of a property transaction, the look at says. 

The record recommends that every one stamp obligation and registrations charges (inclusive of those on mortgages) can be waived within the low-cost housing segment. This means that any securitised pool which include best inexpensive housing loans will also be exempt from stamp responsibility and registration fees, it says.

It will inspire number one creditors to securitise the loan and sell it to SPVs inside the country of abode itself, therefore mitigating servicer chance.

With COVID-19, the argument had emerge as extra persuasive. “The good judgment at some stage in the pandemic is that it's miles the incomes of the low cost bracket which have been hurt, one also can count on that a number of them would have lost their jobs.

The outbreak had curtailed their capability to generate profits and that turned into all the greater cause why stamp responsibility must be reduced to provide them with a wholesome and secure surroundings to live in.

[maheshsomani]

Kolkata civic body to roll out property tax interest waiver from Oct 1

KOLKATA: The Kolkata Municipal Corporation (KMC) will roll out the brand new hobby waiver scheme on assets tax from October 1. Under the scheme, a defaulter, who has no longer paid his share of belongings tax until March 31, this yr, can apply for waiver of hobby on unpaid amount from October 1.

If a defaulter applies for such waiver and pays the total incredible amount with the aid of February 2021, he/she can be entitled to a a hundred% waiver on hobby on the unpaid quantity. If a tax payer applies for the waiver scheme after a passage of 5 months and pledges to pay the full quantity, he/she might be given a 60% waiver.

The scheme will expire in May 2021. The chairman of the KMC board of directors, Mr Firhad Hakim, on Saturday stated the civic body might supply such an possibility to the belongings proprietors to clear their tax within a unique time.

Desperate to atone for the loss of assets tax sales during a prolonged lockdown length, the KMC authorities had in July decided to offer a total interest waiver to the defaulters. A thought in this regard become sent to kingdom government for approval. Hakim on Saturday stated that the state cupboard had cleared the civic frame’s idea and hence the KMC assessment branch became loose to roll out the scheme from October 1. After expiry of the deadline of the whole hobby waiver scheme, the KMC evaluation department may additionally withdraw such schemes, stated a civic source.

According to a KMC revenue branch professional, the desperation to mop up sales for clearing dues to contractors and hold the vital services going necessitated the introduction of the new waiver scheme. “We need as a minimum Rs 500 crore to clear dues to contractors and keep on with important offerings. The choice to offer a complete waiver of interest on belongings tax dues will encourage defaulters to avail of the opportunity. Thus, we will mop up additional revenue from a section of defaulters other than getting taxes from assets proprietors who pay often.

[maheshsomani]

WHY GLOBAL INVESTORS ATTRACTED TO SECONDARY RESIDENTIAL MARKET IN REALTY SECTOR?

The secondary realty sector has been attracted by the investors and shown a steady demand for a few years whereas the primary real estate residential market is somehow monotonous.

Whenever homebuyers and investors are willing to invest their hard-earned money, they certainly make their wish lists and give the priority to their needed criteria. They want their property to be-

Within their budget/price

Within a particular time and occasion

The specifications should be the same as defined 

The time of delivery/handover should be on time as promised

The demand for the primary market is going through many difficulties because the homebuyers are focusing on the secondary market. Homebuyers are dropping their decisions to make any investments in the primary market as they are afraid of delayed delivery of a project or it may get stalled but ready to move in properties are costlier but still, it benefits the homebuyers.

RESALE PROPERTY MARKET

Due to a lack of keeping promises and delayed delivery, the primary market is going down in the sector. The end-users expect the projects to be delivered on time with proper specifications they got while investing in under-construction properties. The investors choose the secondary market over the primary market because those properties are ready and even tried; hence there are fewer chances of defects and risks.

After the era of demonetization, around 10%-12% demand increased in the secondary market and mostly on ready to move in properties which have become an advantage for such residential markets. The buyers choose those, what they can see in real. The adjustments on cash components are also becoming an advantage for the secondary market for growth in sales though it has a disadvantage because the secondary market has no rigorous rules and regulations. After implementing the RERA, the secondary property market has achieved a massive profit. As per the data of the industry the unaccounted cash transactions are indulged with 20%-25% of the total resale cost in which both sellers and buyers are involved.

New Projects in Kolkata are the best for investments because it abides with the guidelines of the regulatory authority and promises to deliver the projects on time with the same features as per the specifications.

RENTAL PROPERTY MARKET

The rental property market is also playing a huge role in the growing demand in secondary residential real estate. With the rise of many IT hubs and professional sectors, the demand of co-living spaces and rental homes are also growing day by day. As many working and professional players are supporting the young generations, they are now can make decisions for buying properties to make their lifestyle standard. To support the living of such young working professionals the co-living spaces of the secondary market is growing gradually.

Residential Projects In Kolkata support the rental property market massively because many growing IT players, MNCs, and corporate hubs are making their base in the city which supports the community of young working professionals globally.

FUTURE MODULE OF THE REALTY SECTOR

Nowadays, the developers and realtors are emphasizing on creating new brands of constructions to support the lifestyle and ecosystem which will be full of amenities. The art of construction will be done in a new way which comes with a responsibility for developers that they should build trust in the mind of home buyers which will attract them to invest in under-construction projects. The real estate industry is a key factor that makes the living of people across the world standard, healthy, and also benefits their financial prospectus. Global investors are now also attracted to the primary residential market which includes the New Launches Projects in Kolkata as it redefines the lifestyle and neighborhood with all the best features .

[maheshsomani]

Unsold inventories of eight major residential markets are over 7lakhs

As per the survey in the real estate, there are more than 7lakhs unsold inventories in eight major residential markets in India as of June 30. The developers should use this pick time by calculating the sales momentum to clear out the unsold inventories. The vast number of inventory overhang is calculated in the NCR markets in India.

There is around 20% of the ready to move in apartments which counted under the unsold inventories. There is a fall of 13% in unsold inventories in the categories of new launches in the eight major cities. As per the survey, there are around 738,335 unsold inventories in these cities as of June 30, 2020. In 2019, these numbers increased to 846,460 unsold stocks. As compared to other cities, Mumbai and Pune have the highest number of unsold stocks in the market around 56% and followed by Bengaluru and NCR are 10% and 15% respectively. In the phase of the full and partial lockdown of 3 months from the last year, the unsold inventories were amounted to 79% as per the survey. From the number of 92764 unsold stocks in 2019, there was a small amount of sale in April- June 2020 which amounted to 19038 units. Affordable housing segment has influenced the realty sector with the sale rate shares of 44%.

Due to increasing numbers of unemployment, job loss, degradation of economy and uncertain financial obligations, there is a heavy impact on the sale rates in the country. Therefore, to revive the sector with a huge push, the developers and realtors are introducing different schemes and offers including discounts and revised prices to boost up the confidence of buyers for investing in real estate as they have dropped their dream due to such uncertain situations. Now, the developers are emphasizing on the completion of existing projects rather than launching different projects.

As per the reports of the survey, the new launches are also got affected by unwanted situations as the commercial market also degraded in this period. Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Delhi-NCR (Noida, Greater Noida, Gurugram, Ghaziabad, and Faridabad), the MMR (Mumbai, Navi Mumbai, Thane) and Pune are cities which are included in the survey of eight major residential units.

As many schemes of developers and government measures are being introduced to revive the sector buyers should invest in Property in Kolkata by availing such benefits of banks as loans are provided as record-low rates and buying homes are becoming easier.

[maheshsomani]

Elaboration of REIT and how to invest

Real estate investment trusts (REITs) is a place that makes the people invest in the real estate industry by buying properties to boost the sector with funds. This is a platform where all kinds of investors including both small and huge budgets can make investments safely by getting rewards in the Indian real estate industry. Investors can make a minimal amount of investments around 2lakhs by securing the best amounts in return. To generate and accumulating the income in the property market of India, the SEBI (Securities and Exchanges Boards in India) has accepted the platform of REIT which will puddle funds from investors. This investment trust should be registered through initial public offering and then accepted by the exchanges, trades, and securities consecutively. SEBI has a medium-size asset which is about 500crores but the minimum asset size should be within 250crore. As there is the availability of stocks, investors can purchase from both primary and secondary markets.

Work of REITS-

This platform will accumulate funds from the investors for making investments in properties like commercial and residential segments, hotels, malls, and shopping places and then it will be mentioned in the list of stock exchanges that will be shaped as trusts. The independent trustees are holding REIT assets for maintaining the units of investors.

Work of Trustees-

The REITs trustees have their definite duties which included the compliances and redressal and also to protect the rights and units of the investors.

The objective of REITs- The main motive of this investment platform to provide the returns which are accumulated from the capital gains acquired from selling the commercial assets. 90% of the income is being shared with the investors as returns. It also ensures the investors to make many investments which are at low risk and assures them to give the best returns on their investments.

Benefits of REITs-

1.  Investors will get 90% of the cash from the income twice in the year.

2. The full valuation will be shown per year and updating of values will be done on a half-yearly basis to maintain the transparency.

3. The REITs should be invested in two separate projects among which 60% will be invested in one single project to diversify the income.

4. Around 80% of the units should be invested in generating the revenues of completed projects whereas 20 % is to be invested in under-construction projects, mortgage-based projects, and equity shares of listed properties or gained 75% of the equity share from the income of government securities.

Which is better- investment on REITs or proper property purchase?

As the Indian property market is stable in the current scenario, people who own a property with which they are more than satisfied will do takes any decision to make such paper investments. People always tend to wait and watch for the correct time of making investments but they usually fail to understand the bottom lines of the market. So it’s better to do investments on the pick time and get the ownership of properties with satisfaction. Residential Projects In Kolkata are the best for making investments to get high returns in the coming years.

[maheshsomani]

Co-living is becoming significant in Kolkata real estate

There is a huge incursion of the migrated population which created a demand for rental spaces with co-living facilities and affordable housing segments. According to the viewpoint of some experts, co-living spaces will help the real estate to revive from the damaging phase which has been created due to less demand and stock of unsold inventories in many micro- markets.

The demand of co-living spaces increased due to several IT professionals in the corporate hubs and many other industries. There are more than 8lakh migrated population who are tending to get settle in cities and acceptance of such demand in the suburbs which always enhances the living in shared spaces. Due to such attractive demands on rentals, many of the realtors and developers have started investing in co-living spaces significantly in the areas like New Town and Salt Lake. This will make the “City of Joy”- Kolkata more exclusive across the Nation which will also provide a huge number of co-living spaces in other areas like New Town and Rajarhat for trouble-free accommodation to the working professionals.

Why Salt Lake and New Town preferred for best residential projects in Kolkata?

There is a huge development in commercial real estate which has a diversified set of IT hubs and corporate offices. To set up such offices, people always choose Salt Lake which has abundant space for providing housing segments doe accommodating the workforces. This place provides the best route connectivity through E. M bypass (Eastern Metropolitan Bypass) and consists of many reputed corporate and IT hubs like Wipro, TCS, Accenture, IBM, Genpact, and HCL where most of the people works.

New Town is another suburb that is emerging rapidly and also demanded by people for enjoying a comfortable lifestyle in the best residential units. It is also very familiar with Salt Lake as there are many start-up companies including ITs and educational centers. This is the place in Kolkata which is selected in the Centre’s 100 Smart Cities Mission as this place is enriched with many residential units with extraordinary infrastructural facilities. This place is one of the favorite places for developers for investments and co-living spaces for working professionals.

Both the places are preferred for their prominent factors including social amenities, connectivity to the offices, transportation, and infrastructural facilities which enhance the co-living spaces to the nomadic population.

Drastic changes in surroundings and rapid growth in infrastructure made these smart areas perfect for the construction of residential units. Homebuyers can make easy decisions for buying Flats In Rajarhat which is full of both affordable and premium residential projects with all amenities and facilities.

[maheshsomani]

Incentives provided to the laborers for uninterrupted constructions works

Realtors have started providing funds of Rs.2000 to the laborers under referral scheme when one refers to a worker in the site for enrolment. The developers are also taking care of the worker’s families and trying to complete their projects as soon as possible. They are setting up the medical camps in the construction sites and sanitizing the entire premises and the laborers also. The developers of Kolkata are also emphasizing to complete the exclusive and budget buying Flats in Kolkata which are on-demand but stalled due to lockdown. They are now working with energy but facing challenges and obstacles for starting the construction sites. the government has already provided relief measures to the realtors for reviving the sector and now they are helping the workers and the families with many facilities.

Many realtors and associations in Gurgaon are supporting 9515 families of workers both financially and mentally. One of the officials from the association said that helping the families of workers mentally and mentally in this critical time in post- COVID-19 is a challenge to the realtors and developers. They assure the families that workers are in a safe condition in the construction sites and the workers always remain safe and get support in this outbreak. The developers are taking different measures to support the laborers who have migrated from their respective cities and towns. The realtors are also providing prefab structures to the laborers which are cooled and with proper temperature as per the guidance of government.

M3M association has collaborated with Iskon for providing lunches to the laborers who work in their respective sites. Even, in the past days, the realtors have provided fresh milk, clean drinking water, and other safety products for toddlers and growing children. They also gave vegetables, rice, pulses for daily meals, and washing items for cleaning clothes, personal uses, etc.

One of the officials from realtors’ body said that the realty sector is reviving again after returning of laborers. The time from which the sector is going is very tough and drowning but still, the developers are taking up the challenges to keep the laborer’s safety and helping their families as well. They are also taking other measures like sending agents for recruiting more workers, applying methods, and making them learn about the new ways of construction. Planning and strategies are also changing to improve the construction process and keep them safe from the effect of Covid-19.

[maheshsomani]

Property prices has a hike to 10% by FY 2021

Due to Covid-19 pandemic, the world is totally shattered and facing huge problems economically. Moreover, many essential works and supply of goods are being stopped due to lockdowns. Though, the government has taken initiative to open up the transportation for essential goods and start the work at construction sites to support the realty sector but by maintaining social distancing. Though the government has introduced to release the stress fund of 25000 crore for the unsold and stalled projects. This measure will help the real estate industry to boost up the condition and also for the developers. Due to global lockdown, real estate industry is again facing severe losses. Due to coronavirus pandemic, most of the workers and labourers has been sent back to their respective localities which stopped the construction works. Lack of workforces and delays in project delivery leads to low cash flow. As the interest rates are high for the developers, the cost of material supply is also very high. Contact with clients are also becoming impossible as the offices are closed due to pandemic. Proper site visits are also stopped due to current situation and people are staying at home due to government precautions. Luxury premium projects are also stalled as the cost of such material supply are been increased. Transportation cost also high as many of the drivers are not available. These are the main reasons why the cost of production is increasing with the hike of 10% in the another one year. Home sales can be improved as RBI has reduced the repo rates which is comparatively low as per the records. The interest rates on home loans are reduced to grab the interest of homebuyers by providing the certain benefits of policy. According to the budget announced by the government has deducted the interest of home loans to 3.50lakhs on affordable housing segment. This will also renew the unsold inventory by declining it. Most of the developers has started to provide different schemes for payment plans of free parking and the rates of registration and stamp duty has also reduced to 20%. The buyers can book their property as per their choices by depositing minimum amount as token money which is. Also refundable. Premium quality apartments like 3 BHK Apartments in South Kolkata are also getting ready for the investment which is providing different offers and benefits. Buying Property In Kolkata in this situation also becoming an advantage for the buyers as different schemes and low interest rates will help the people to save their savings with a good home as an asset for life. Demand will remain stable due to less launches in FY 20-21 and India is still short in the choices of inventory. There may be some cash stressed Developers who will reduce price to get liquidity, but that cannot be construed as market.

[maheshsomani]

What are the Tips for broker corner in Covid-19 pandemic?

Continuation of business in real estate industry is not at all easy. But still, developers and brokers need to carry on their business by maintaining some common rules. They should communicate with their respective clients through phone calls and emails regularly.

Cold Calling in Real Estate

Cold calling is a way of tele-conversation where a healthy relationship grows between the seller and buyer for continuing the business dealings. Through this, buyers can get the clarification of their queries and also discuss about the property prices. There are some points that people should remember during cold calling-

1. Any people can severely affected by Covid-19 so if anyone replies with call back later or I ambusy. Don’t call them back immediately. It’s better to take time and patience.

2. Talk with the clients politely and by maintaining professionalism go to the point of the topicquickly. Get in touch with those who works from home and speak about the subject quickly asthey don’t have a fixed schedule to work.

3. Do not call the clients in odd times. It’s better to call when people are done with their morning essential works and lunch works. Seller should call the clients with proper network stability so that it goes smoothly and conversation should be ended in one call.

4.  Make all the important points noted and keep paper and pen handy that the seller does not miss out any point.

Email Communication in Real Estate

Apart from tele-conversation, sending emails properly with all details also help brokers to communicate with clients.

1. The email will start with proper greetings and all gentle gesture to show respect to the client.

2.  All the property details with specifications including brand names and link of the official website should mention to know more.

3.  Avoid spam, alternative usage of different languages, unimportant information, unwanted blogs etc in the mail content.

4. Do not call immediately after sending the mail. Wait for the answer and feedback of the clients.

[maheshsomani]

Allowance on Construction of Projects within Municipal Limit

Construction of project will be resumed with guidelines of municipal corporation. No workers will be taken from outside of working in the sites . Construction works will be suspended in the containment zones. All these measures are taken by the ministry of home affairs and the work will started from April 20, 2020 . All these activities will be done under strict compliance of district administration, state and Union Territories by maintaining all the lockdown preventive measures . Other than these construction of roads, irrigation projects, building and industrial project, are also allowed within the Municipal limits. According to the preventive measures and under strict jurisdiction of state territories for the movement of working people. There are some SOP which should be followed:

1. Offices should maintain temperatures and use sanitizers very frequently.

2. Working should done in shifts for maintaining social distancing.

3. Workplace should be sanitized thoroughly between the shifts.

These measures actions only for containment zone free areas but not for those areas which are affected by the Covid-19. Any person who is avoiding and not obeying the precautions Covid-19 they will be punished legally and strict action will be taken under the section of 51 to 60 of disaster management act 2005.

Though people can use their time in searching of flats in Kolkata which can be benefits them for making profit and also secure their life.

[maheshsomani]

What is The Importance of Will for Dividing the Property?

Most of the Indian property holders hesitate in making of wills for the division of the property as they cannot able to trust the fact of will. Though the property owners need to make a will for easy passing the property according to their choice. 

Importance of will

It is not mandatory but still, some people strongly believe that wealthy, old and diseased people need to make a will. But basically, the person who becomes financially active should make a will. Anyone can make a will who owns a property to pass the property on right hands before his death. There is no harm in making a will if dear ones or the close ones of the property owner get his property through a legal content.

A property can be disturbed by the present heirs of the property owners based on succession laws. If the owner has some particular wishes at the time of transferring the property, making a will is the best method to fulfilling the desires of the property owner. Making a will not only avoid the disputes regarding mitigation, but it also helps the upcoming owners to save a lump sum amount of money. A property always needs a stamp duty to buy will does not require any stamp duty. It is a cup of advice that before making decisions about any property transfer, one should take legal advice. 

Some points to remember-

1. According to the Indian Stamp Act, 1899, no payment of stamp duty is required in the will.

2. Unregistered legal documents and a written petition on white paper also considered as a will. There is no requirement for legal documents.

3. A will should be signed and dated with clear writings and sentences.

4. It should be attested by two witnesses.

5. All details about the property and divisions should be mentioned specifically.

6. Maintenance of utilities and usage of common areas should be mentioned in a will.

7. Changes in policies of government lead to construction and to control this situation a will should clarify the issue.

Property seekers should look for 3 BHK Apartments in East Kolkata as any family can easily settle down in the triple bedroom flats and all the registration details will be provided to the buyers for maintaining transparency.

[maheshsomani]

RERA and Agents issues amidst CORONA Pandemic

Validity of Registration and Timeline Extension for statutory compliance are been revised due to short term crisis of Covid-19. Countries and the respective government are fighting to tackle the health and economic conditions which was caused due to sudden turmoil and rapid spread of coronavirus globally. From the mid of March 2020, the government of Maharashtra is taking precautions to prevent the rapid spread of Covid-19 by announcing lockdown, work from home and ability of partial workforce to work in construction sites. On 11th March 2020, World Health Organization (WHO) announced to all the countries for taking immediate precautions for the sake of human lives from getting affected by Covid19. 21 days lockdown has been announced globally till 14th April 2020 with the allowance of mandatory services selectively.

Due to the preventive measures of lockdown, the whole construction work of Maharashtra has a great impact. The construction materials supplies has been affected and all the labour force has been sent to their respective states. All these circumstances leads to restart of Maharashtra real estate projects after a short period. RBI allowed the banks for moratorium of three months on payments of EMI and fixed term loans. To support the effort of government measures to prevent Covid-19 and also to save the current condition of Maharashtra real estate projects, this order has been issued. To influence the term of completion of projects in consideration and present circumstances, the Authority is granting the registration/ extension under. Section 5, 6, 7(3) of the Act or Rule 4(2) if Maharashtra Real Estate ( Regulation and Development) (Registration of Real Estate projects, Registration of real estate agents, rates of interest and disclosure on websites) Rules 2017. Authority also need to get the assure on the compliance of obligations imposed on promoters, the allottees and real estate agents under the section 34(f) of the Act. The completion date has been revised and the extended completion date on or after 15th March 2020, the registration validity of such respective projects of MAHARERA got the extension of three months. The issuance of registration certificate of such projects with the revision of timeline as soon as possible. The timeline limits of statutory compliance accordingly with real estate (Regulations and Development) Act,2016 and the due dates in March/April/May has been extended till 30th June 2020 for the making of rules and regulations. “In line with MAHARERA pronouncements, other state/UTs will follow the same. Developers will face lots of issues regarding availability of labour, material, logistics etc. Even cash flows will get affected due to lower future realisation from already booked Properties. Future launches will get delayed due to lower confidence on future buying. 1st quarter of FY 2020-2021 will be a struggling, 2nd quarter will be of settled down period, 3rd quarter will bounce back and last quarter of FY 2020-2021 will witness a real boom in the Real Estate residential sector. Everything has an End. Even organised real estate agents will hit very badly due to high overheads of employees, advertising and other infrastructure costs. Builders are hereby requested to create an emergency fund to clear all pending bills of all real estate agents as their only income is brokerage. Many developers have already taken steps in this regard on suo-moto basis in India. pandemic is a temporary phase, will surely come out of this. We hereby request all online classified portals to waive at least one quarter package charges” said Mr.Mahesh Somani :Vice President – NAR India (National Association of Realtors, India).

[maheshsomani]

Positive opportunities in realty sector with new reforms due to Covid-19 crisis

Due to coronavirus pandemic, Indian economy is in a indefinite stage where it needs a recovery with different compensation measures. All the reforms should be taken and it is needed to implemented as soon as possible as it can become a huge loss in the lockdown. To avoid the unwanted consequences of Covid-19 lockdown, central government has taken certain reforms for the positive outlook in the economy. The real estate industry is also facing severe problems but it can be recovered very tactfully during this pandemic.

The project delivery are also delays dues to the current situation. Though for the continuation of the business, government permit to start the construction worker in the sites for quick delivery of the projects and cash inflow. Developers are adopting different measures like clients will get benefits and advantages on investment of affordable housing sector. The banks and NBFCs also reduced the interest rates, the registration and stamp duty rates also reduced to one percent.

After several government norms, main thing that people should maintain the social distancing in the workforce and also maintain the temperature. Still there are some dilemma in developers mind and still arguing on different subjects like Cost regime, and many others. Though all these norms will witness the positive expansion of business in real estate industry and in the coming times people can enjoy the new designs of affordable flats in Kolkata with all benefits.